Understanding the Importance of Business Process Design

StrategyDriven Process Management Article |Business Process Design|UNDERSTANDING THE IMPORTANCE OF BUSINESS PROCESS DESIGNBusiness Process Design is one of the most critical steps of BPM that needs to be designed after the proper analysis and detection. The core purpose is the identification and implementation of the optimized process that ideally meets the expected requirements as per the strategic business needs.

Business Process Design for strategic management carries significant importance due to the availability of specific interpretation. The process is more strongly associated with the development of cost-effective approaches that can ideally be implemented for the perfect execution of various tasks involved in a business. However, every individual has his perception of understanding multiple aspects, but it is quite essential to understand the importance of business process design before pursuing any of the businesses.

If you haven’t identified your business process needs appropriately, then it’s the right time to pull up the socks. Here in the present discussion, we will highlight the importance of business process design.

Importance of Business Process Design

BPD is important for endless reasons including:

Proper Alignment of Operations with Business Strategy

To change or modify the business strategy usually requires improving multiple operations being performed by different people involved in a business. It is also a natural phenomenon that people find it challenging to accept the changes, so they resist it mostly. That’s why the rules, processes, and the individuals that are part of old strategies can create a significant impact on the latest policies.

It gets facilitated by Business Process modeling by:

  • Properly assisting executives and managers of the organization in sustaining reliability in all the business processes. It all can be done by keeping a proper eye on the entire operations and strategy of the organization.
  • By ensuring that the operational tasks and activities of the individuals are correctly aligned with the strategic goals of the organizations. If there is any misalignment in the strategies and objectives, then it may cause failure in proper executions. Even if the organizational tasks are performing optimally, the overall success of the project cannot be assured.
  • By the proper implementation of “Business Process Re-Engineering (BPR)” by adequately analyzing the current performances and altering them to enhance the performance. The significant aspect of business process analysis is the proper identification of bottlenecks and unproductiveness in the process and ultimately improving them.
  • Properly allowing the process agility, the capability to modify and communicate the processes in no time. It results in taking the better advantages of the latest opportunities of the business or tackling the business challenges.

Enhances Business Process Communication

One area that plays a significant role in creating a successful business is the presence of a clear idea about the tasks an organization has to perform and the goals it has to achieve. How these goals can be made and what the roles and responsibilities of every individual are. Clear communication regarding the operational processes is essential for the proper facilitation of the team members of the organizations.

The proper communication and documentation is done by Business Process Modeling because:

  • Process modeling ensures the provision of common uncomplicated language with simple communication methodology. It provides accurate information with comprehensive decision rules.
  • It is optimal for transferring practical knowledge from one individual to another and better trains the new people in the organization. It all can be done by performing a complete documentation process and following the guidance properly.
  • Reducing the probable danger of losing the staff members of the organization that may result in trailing business process knowledge.
  • Properly start the documentation of business processes.
  • Properly converting the experience of the team members in the documented form.

Improves Consistency and Proper Control

All the successful organizations correctly identify and manage the business processes and maintain consistency throughout the period. The process control and flexibility is the input and a core component that plays a vital role in the success of the business. Process control instruments are of great benefit if they get executed properly.

It is possible by helping with:

  • The proper formalization of the processes that have not been appropriately documented, which have been revolutionized as informal knowledge.
  • Proper execution of the processes in a consistent way because it is quite unrealistic or non-professional to rely on the individuals to remember all the data. Instead, the written documented data provides more authentic information.
  • A proper decision making procedure by excluding the guesswork as the documented business data can provide better information.
  • Fastest solutions to any business concerns in the most elegant way.
  • Gives a proper charge to people involved in the business.
  • Provides proper support to business compliance initiatives, including ISO 9000 and Six Sigma.

Augments Operational Effectiveness

  • Nowadays, in the era of technical advancement, all the business managers try their best to utilize all the resources for the maximum revenue generation optimally. There is no room for ineffectiveness and depletion of resources.
  • The analysis steps of business process modeling, along with complete simulations, helps the managers to make the best use of all the available resources to enhance the effectiveness and efficiencies.
  • It helps in the reduction of process cycle time and identifies the areas that can be improved.
  • It helps in improving the efficiencies of the existing resources and tries the best to provide enough training to do more with limited resources.
  • It helps in providing risk-free experiments and supports providing ideas for further process improvement.
  • It encourages the process of critical thinking ideas so that the latest changes can be implemented for further improvement.
  • Process analysis is useful for optimal utilization of existing resources that can help in enhancing the overall productivity of the organization.

Increases Competitive Advantages

All the advantages mentioned above ultimately result in doubling the competitive edge in the market for all those organizations that have spent enough time in improving the business documentation.

Some of the companies have practiced this business process modeling that not only helped them in generating better ideas but implementing better business models as well. The consistent refinement in the existing business models provides a great room of improvement with a successful process modeling.

A small step towards improvement can have a more significant impact on the overall organization. Those minor refinements are usually of higher value as they can help in giving better competitive advantages over the core opponents available in the market.

Effective strategic planning is the key that makes your ideas unique and better than others. However, the execution can be assured by proper planning and improving overall communication skills. Additionally, the points mentioned earlier explicitly highlight the importance of effective business modeling that cannot be ignored at any cost.

Final Words

With no proper vision, mission, and strategic planning, running the business is more like traveling on the unknown paths that never lead towards the desired destination. Also, this is where most of the businesses suffered and it can become a major cause behind business closures. That is why the implementation of business process modeling is the need for all the latest business concerns.

If you want to run a successful business where everyone works with the proper alignment, then you must think about implementing the practical strategies, tools, and techniques that are essentials for the growth and sustainability of any business.

Your success has a lot to do with the appropriate planning; otherwise, all your efforts and resources can be wasted.

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StrategyDriven Enterprises, LLC

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Fueling Business Process Management with the Automation Engine that Can!

Organizations deploy automation technologies as the primary resource in their Business Process Management. Gone are the days were BPO meant Business Process Outsourcing, with Robotic Process Automation technology fueling new millennium enterprises, BPO has taken on a new meaning, Business Process Optimization.
In the recent past, businesses had only external, third party vendors to rely on for major projects, operational emergencies, and other labor-intensive initiatives that required resources they did not have. Business Process Outsourcing (BPO) meant businesses had to succumb to the high-cost, untimely, and unskilled labor in order to remain in operations.

Today’s C-level executives understand peripheral management of their critical applications, data systems, and shared services is not an effective, efficient, secure, or financially-feasible effort and require more robust, permanent solutions for assimilation into their BPM.

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About the Author

Richard MilamRichard Milam is the president and CEO of EnableSoft. Prior to founding EnableSoft, in 1995, Richard was a partner and Senior Vice President of FiTech PLUSmark, and held other positions in Information Technology, Operations, and Sales.

3 Reasons to Automate Your Business in 2015

If you’ve added ‘being more efficient’ to your list of New Year’s resolutions recently, you may be struggling to find ways to generate more productivity with little effort. Chances are, the solution (and the problem) is literally right in front of you. Your mouse and keyboard are major sources of inefficiency. Communicating with colleagues, manipulating spreadsheets, entering customer information into a CRM… these are all examples of time-consuming manual processes that can be done better and faster by someone (or something) other than you.

If your idea of fun is copying and pasting text all day then by all means, continue doing what you’re doing. But we’ve got some thoughts on why you should at least consider ways to automate business processes in your organization and be more efficient in 2015.

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About the Author

Richard MilamRichard Milam, Founder and CEO of EnableSoft Incorporated (www.enablesoft.com). EnableSoft, is engaged in offering game changing software products and services to the business and financial services industry, healthcare and a dozen other markets. EnableSoft serves over 500 corporate clients worldwide. Prior to founding EnableSoft in 1995, Richard was a partner and served as Senior Vice President of FiTech PLUSmark, Inc. Richard designed and implemented a business plan to offer bank merger data conversion services which resulted in the successful merger of over 50 financial institutions.

Macro Maps Help You Align Processes and Strategy

StrategyDriven Process Management Article | Macro Maps Help You Align Processes and StrategyWhen organizations first start doing process improvement they use a myriad of ways to decide which processes to improve first, such as:

  1. IT bought some software and needs to install it, so let’s look at the current process first.
  2. A leader raised his hand and said, “I’d like to start with this one.”
  3. A department wants to improve the process because it would help in a key initiative.
  4. An ‘easy’ process is chosen to start on.

But after a number of processes are selected with this ‘whoever is interested’ approach, leaders and process Improvement practitioners see that it would make sense to select processes that are underperforming, would provide increases in market share and revenue, or would directly support key strategic initiatives. In order to do that, you need to have an understanding of core process in the company now. A Macro Map can help.

A Macro Map is a graphical rendering of an organization as a portfolio of processes. (Many thanks to my colleague Jerry Talley for initially developing this concept of a Macro Map. [www.jlTalley.com] He and I have been using it and improving it ever since.) Here’s an example:

Student Services Macro Map

In this example, the core processes (ones that produce the key outputs of the organization) are highlighted in one section, support processes in another section, and customers in the third section.

How do you Build a Macro Map?

I suggest starting with a small group of executives/managers who know the work of the department or division. (If you are doing this for the whole enterprise, you will need to build it by groups and then form the total picture, making sure to show the cross functional processes.) Build the first draft of the macro map with them, and then take it to staff and have them verify it and add to it. Below are some specifics to help you with the method.

With the managers:

  • Begin with listing the customers – the people who receive or use the output.
  • Then list the core products or services delivered by the department.
  • Now identify the processes that produce the core products.
  • Then identify the processes that support the delivery of the core products. Examples of these could be planning, scheduling staff, research, securing resources.

Then take the map in graphic form to a representative staff group.

  • Explain how you built the first draft of the map with the managers, and what its components are.
  • Start with the core processes and ask them if anything is missing or needs revision.
  • Then go to the support processes.
  • Ask them if they can see the components of their job in different place on the Macro Map. What components of their job are missing?
  • Keep adding and revising the map as suggestions are made.

How the Macro Map is Used

  • The Macro Map provides a list of the portfolio of processes for the department or organization. This enables anyone to compare the voice shouting the loudest for a process selection to be compared to the whole portfolio. START HERE
  • These processes are categorized, so it’s easy to see which are the core ones supporting customer deliverables, and what other types of processes there are. (This helps to make it clear which ones are the most important to the customers.)
  • Add quantitative data to the Macro Map. The Macro Map below is the same one as shown at the top, but now it has data showing number of hours worked on each process and the customer satisfaction ranking. It is obvious which ones demand the most employee time. And for this organization, where the goal was to streamline processes, reduce workload, and not hire additional employees, it was obvious which ones to work on first.

Student Services Macro Map with Data

Some organizations create a Business Architecture graphic to show how business strategy, functions, processes, technology and data relate. The Macro Map is simpler than that and focuses on processes and customers. When you add baseline data to a Macro Map, you visualize the criteria that the organization has chosen to use to prioritize their projects. In the example for Student Services it was employee hours and customer ratings. Those might now have been my choice, but the organization had these metrics and they worked fine. When doing the first Macro Maps I like to keep the measurement simple – not requiring weeks to gather. Other measurement criteria could include costs, throughput, comparisons against competitors, variability, market share, risk, or alignment with the strategy. Quantitative measurement values point to the top three to five processes, but leaders need to consider some other parameters – namely time to complete, complexity, cost, etc. that could influence the choice of one project or another.

The macro map is a wonderful info graphic to display and categorize all the processes. It also gets executives and employees engaged in thinking about the big picture by process, and helps each one relate it to their own work. And it doesn’t take that long to build. Try it!

About the Author

Shelley SweetShelley Sweet, the Founder and President of I4 Process, and author of The BPI Blueprint, is a highly respected BPM Practitioner. She provides consultation, workshops and training programs for clients ranging from start-ups to Fortune 500 companies, educational institutions, and government organizations. Her programs are based on a unique 3-PEAT method of modeling processes and analyzing data that accelerates operational improvements, and builds leaders and employees who sustain operational excellence. Want to learn more about BPM metrics? Email Shelley at: [email protected]